RR No. 3-2026: Filing Rules for the LPG and Kerosene Excise Tax Suspension (EO No. 114)
Revenue Regulations (RR) No. 3-2026 implements Executive Order (EO) No. 114, series of 2026, by suspending the excise tax on LPG and kerosene for three months from April 17, 2026, and it sets the compliance steps: return and Official Register Book reporting, an Authority to Release Imported Goods (ATRIG) remark, a notarized stock inventory within 10 days, and stamped withdrawal certificates. The scope excludes LPG used as petrochemical raw material or for motive power, and kerosene used as aviation fuel.
Keep Your Other BIR Filings on Schedule FREE →This post covers the filing mechanics in RR No. 3-2026, as summarized in the BIR’s own digest. For the later renewed suspension under EO No. 125, see BIR RMC No. 100-2026: Is LPG and Kerosene Excise Tax Suspended?. For the excise return forms in general, see BIR Form 2200-P for Petroleum Products and the excise tax topic page.
What does RR No. 3-2026 suspend, and for how long? #
RR No. 3-2026 suspends excise tax on LPG and kerosene removed after the Executive Order takes effect, for three months or until the price trigger is met. The BIR digest states the regulations were issued on April 17, 2026. The core text reads:
“Beginning April 17, 2026, the imposition of Excise Taxes on the following covered petroleum products is suspended: a. LPG, except when used as raw material for the production of petrochemical products or used for motive power; and b. Kerosene, except when used as aviation fuel.”
Source: RR No. 3-2026 Digest, Bureau of Internal Revenue, summarizing the regulations’ scope under Section 148 of the National Internal Revenue Code of 1997 (Tax Code).
| Element | Rule in the digest |
|---|---|
| Covered products | LPG (except petrochemical raw material or motive power use); kerosene (except aviation fuel) |
| Which removals | Only products removed from the place of production or customs custody after the effectivity of the EO |
| Duration | Three months from effectivity, with monthly review by the Development Budget Coordination Committee (DBCC) |
| Automatic reversion | One week after the one-month average Dubai crude price (Mean of Platts Singapore) falls below USD 80 per barrel as certified by the Department of Energy, or on expiration of the three months |
| Monthly reports | The BIR and the Bureau of Customs (BOC) submit monthly reports to Congress by the 15th day of the following month |
What must manufacturers do? #
Manufacturers of domestically produced LPG and kerosene keep filing returns, show a zero rate with an EO remark, and submit Official Register Books for each removal. The digest states:
“Manufacturers of domestically-produced LPG and kerosene shall: Continue to submit the corresponding tax returns with the BIR indicating the corresponding tax rate as ‘zero’ with remarks ‘EO NO. 114, SERIES OF 2026’. All other pertinent fields shall be filled out in the regular course of business; and Submit the corresponding Official Register Books (ORBs) per removal of LPG and Kerosene products.”
Source: RR No. 3-2026 Digest, guidelines on submission of returns and reports, item (a)(i).
The suspension therefore does not excuse the return. Filing stays mandatory, the tax rate field reads “zero,” and the remark identifies the legal basis.
What must importers do? #
Importers keep filing returns with the BOC and secure an ATRIG carrying the EO remark. Under item (a)(ii) of the digest, importers of LPG and kerosene “continue to submit the corresponding tax returns to the BOC” and “secure the corresponding Authority to Release Imported Goods (ATRIG) with remarks ‘EO NO. 114, SERIES OF 2026’.”
Who files the stock inventory, and where? #
Manufacturers, importers, and lessees of storage depots file a notarized inventory of covered products as of April 16, 2026, within ten days after the Executive Order’s effectivity. The format is Annex “A” of the regulations, which was not part of the digest reviewed for this post. The filing office depends on where the taxpayer is registered:
| Taxpayer registered in | File the inventory with |
|---|---|
| Revenue Region 4 (Central Luzon), 5 (CaMaNaVa and Bulacan), 6 (City of Manila and Palawan), 7A (Quezon City), 7B (East NCR), 8A (Makati City), 8B (South NCR), 9A (CaBaMiRo), or 9B (LaQueMar) | Excise LT Field Operations Division (ELTFOD) |
| Anywhere outside Revenue Regions 4 to 9B | The concerned Excise Tax Area (EXTA) |
The digest adds that these sworn statements “shall likewise be subjected to verification as required under existing regulations and issuances,” and that the Department of Finance, through the BIR and BOC, conducts its own inventory of existing LPG and kerosene stocks as of the effectivity of the EO.
How must withdrawal certificates be marked? #
Every withdrawal certificate for covered products under the suspension must carry a stamped phrase. The digest states: “All Withdrawal Certificates issued for the removal of covered petroleum products covered by the suspension shall be prominently stamped with the phrase ‘STOCKS COVERED BY EO No. 114, SERIES OF 2026’.”
Revenue Officers On Premises (ROOPs) continue monitoring taxpayers’ establishments under Sections 5 and 6 of the Tax Code. Violations, including non-compliance with reportorial requirements, “shall be subject to the corresponding penalties provided for under Title X of the NIRC, and applicable regulations.”
Worked example: a manufacturer and a depot lessee #
A worked example shows how the steps apply. The scenarios and figures are fictional.
- LPG manufacturer, registered in Quezon City (Revenue Region 7A): removes 200,000 kilograms of LPG for household distribution after April 17, 2026. It files its return showing the rate as “zero” with the remark “EO NO. 114, SERIES OF 2026,” submits the Official Register Book entry for the removal, and stamps the withdrawal certificate “STOCKS COVERED BY EO No. 114, SERIES OF 2026.” Its notarized April 16 stock inventory goes to the ELTFOD.
- Depot lessee registered in Cebu (outside Regions 4 to 9B): holds kerosene stocks as of April 16. Its inventory goes to the concerned EXTA, not the ELTFOD.
- Kerosene used as aviation fuel: falls outside the suspension, so those removals do not get the zero rate.
How does this relate to the later suspension? #
RR No. 3-2026 and the RMC No. 100-2026 post cover two different rounds of suspension. RR No. 3-2026 implements EO No. 114; the RMC No. 100-2026 post covers the renewed suspension under EO No. 125 and notes that an earlier suspension took effect around April 2026. This post has not verified whether the filing steps above (the “zero” remark, inventory, and stamping) carry over to the EO No. 125 round, and those steps cite EO No. 114 specifically. Check RMC No. 100-2026 itself for the current instructions.
Frequently asked questions #
What does RR No. 3-2026 suspend? #
Revenue Regulations No. 3-2026 implements Executive Order No. 114, series of 2026. Beginning April 17, 2026, it suspends the excise tax on LPG, except when used as raw material for petrochemical products or for motive power, and on kerosene, except when used as aviation fuel. The suspension applies only to products removed from the place of production or customs custody after the effectivity of the Executive Order.
How long does the suspension under RR No. 3-2026 last? #
Three months from the effectivity of the Executive Order, subject to monthly review by the Development Budget Coordination Committee. The excise tax rates automatically revert, without further issuance, one week after the one-month average Dubai crude oil price based on Mean of Platts Singapore falls below USD 80 per barrel as certified by the Department of Energy, or upon expiration of the three months.
How must a manufacturer fill out its return during the suspension? #
Manufacturers of domestically produced LPG and kerosene continue to submit their tax returns to the BIR, indicating the tax rate as “zero” with the remarks “EO NO. 114, SERIES OF 2026”, fill out all other pertinent fields in the regular course of business, and submit the Official Register Books per removal of LPG and kerosene.
What must importers do under RR No. 3-2026? #
Importers of LPG and kerosene continue to submit the corresponding tax returns to the Bureau of Customs and secure the Authority to Release Imported Goods (ATRIG) with the remarks “EO NO. 114, SERIES OF 2026”.
Who must submit a stock inventory, and by when? #
Concerned manufacturers, importers, and lessees of storage depots must submit duly notarized inventories of all covered petroleum products as of April 16, 2026, within ten (10) days after the effectivity of the Executive Order, in the format prescribed in Annex A of the regulations. Taxpayers registered in Revenue Regions 4, 5, 6, 7A, 7B, 8A, 8B, 9A, and 9B file with the Excise LT Field Operations Division, and all others file with the concerned Excise Tax Area.
Summary #
RR No. 3-2026 suspends excise tax on LPG and kerosene (with stated exceptions) for three months from April 17, 2026, with automatic reversion tied to Dubai crude prices. Manufacturers file returns at a “zero” rate with an EO remark and submit Official Register Books, importers secure an ATRIG with the same remark, covered taxpayers file a notarized stock inventory within ten days, and withdrawal certificates are stamped. Violations fall under Title X of the Tax Code. This post relies on the BIR’s digest, and no law-firm or audit-firm commentary was reviewed.
Source: RR No. 3-2026 Digest, Bureau of Internal Revenue.